Select Committee on European Scrutiny Twenty-Third Report


8 Excise duties: administrative cooperation

(25211)

16361/03

COM(03) 797

Draft Regulation on administrative cooperation in the field of excise duties

Draft Directive amending Council Directive 77/799/EEC concerning mutual assistance by the competent authorities of the Member States in the field of direct taxation, certain excise duties and the taxation of insurance premiums and Council Directive 92/12/EEC on the general arrangements for products subject to excise duty and on the holding, movement and monitoring of such products

Legal baseArticle 95 EC; co-decision; QMV
DepartmentCustoms and Excise
Basis of considerationMinister's letter of 10 June 2004
Previous Committee ReportHC 42-ix (2003-04), para 18 (4 February 2004)
To be discussed in CouncilNot known
Committee's assessmentLegally and politically important
Committee's decisionCleared (decision reported on 4 February 2004)

Background

8.1 The present legal basis for administrative cooperation between Member States in the excise field is the Mutual Assistance Directive, 77/799/EEC, as applied by Council Directive 92/12/EEC which deals with a range of general excise matters. Together these Directives allow for certain types of information to be voluntarily exchanged upon request. In the case of the System for the Exchange of Excise Data, it also requires Member States to maintain, and periodically exchange, details of warehouse keepers or other persons and premises authorised to receive excise goods in duty suspension.[18] The aim of the draft Regulation is to bring together all excise mutual administrative assistance provisions in one legislative instrument. It is designed also to strengthen administrative cooperation between Member States by providing clearer binding rules, by devolving cooperation to increase effectiveness and by increasing the speed and volume of information exchanges. The draft Directive would amend the existing Directives to delete references to excise from the Mutual Assistance Directive and to delete mutual assistance provisions in the Directive on general excise matters.

8.2 When we considered these proposals previously we were content to clear them because the substance is unexceptionable. But, like the Government, we were concerned that the proposed legislation, although dealing with taxation matters, had a legal base requiring only a qualified majority rather than unanimity. We urged the Government to oppose the incorrect legal base cited in the drafts, and to challenge it before the European Court of Justice if necessary. We asked to have a report of developments on this issue.

The Minister's letter

8.3 The Paymaster General (Dawn Primarolo) writes to tell us:

"I am pleased to be able to report that in the latest Presidency compromise text, the proposed legal base for the two proposals has been changed from Article 95 (QMV) to Article 93 and Articles 93/94 (unanimity) respectively. We anticipate that agreement on this proposal will be reached fairly soon. In the final stages of negotiations we will continue to monitor the position closely and maintain our firm opposition against the use of Article 95 for any such tax provisions."

Conclusion

8.4 We are grateful to the Minister for this welcome news. We should be grateful if she would let us know of any adverse developments.





18   Excise goods in duty suspension are those on which payment of excise duty due is, subject to conditions, temporarily suspended. Back


 
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